Company Update

Launch of a New Optimisation Method

Sanne Kruis

The Marketing Manager of The Next Ad.

Oct 28, 2016

We’ve just launched a new optimisation algorithm. This new optimisation method allows you to optimise ad sets using target parameters for a fixed KPI.

Auto-optimise Campaigns based on a Fixed Action Price

We’ve just launched a new optimisation algorithm. This new optimisation method allows you to optimise ad sets using target parameters for a fixed KPI. We’ve built this new option into Hyper Optimisation to make optimisation accurate for a specific advertising target.

Why did we extend Hyper Optimisation?

Initially the goal of this new feature in the optimisation engine is to keep the target KPI below a fixed value. This value is set by you (the advertiser itself) and enables you to optimise your campaign based on the maximum cost per action. In this way your campaign remains profitable for you.

Suppose you’re advertising on Facebook and you’re selling ear plugs packages. You know the cost price of your package and you know what your maximum cost per action is to make advertising on Facebook profitable for your business. If you have a maximum cost per conversion of €25,- that will be your target KPI.

This is how optimisation based on target KPI works

When using our new Hyper Optimisation goal, you’re aiming to keep the target KPI below your given value. While the campaign is running, we’ll be shifting budget from the bad performing ad sets (those above the target KPI) to the ones that perform the best (those below the target KPI).

Additionally, if no better ad set investment is found or if the “performance capacity” of the available ad sets has been reached, we’ll be shifting budget to a reserve pool.

The reserve pool

Let me explain you a bit more about how the reserve pool works. Suppose all the ad sets are not performing well. Then you will not shift budget from one bad performance ad set to another bad performing ad set. In this case, we will shift the budget to a reserve pool to give the ad sets a chance to perform better without spending too much money within the campaign. If the ad set resumed, budget from the reserve pool will slightly be re-allocated to the ad set.

Optimisation based on a given value changed the way we interpret a campaign performance. This way of optimisation allows you sacrifice volume and campaign spend in exchange for a CPA that you can control.

We’re calculating the maximum reach and performance of an ad set, to calculate the maximum budget the ad set need to get the best result out of your campaign, based on a fixed KPI. We’re constantly shifting budget slightly between the ad sets or between the reserve pool and the ad sets to find out the maximum budget the ad set needs to get the best ad set performance and get the maximum return on ad spend. By doing this, we’ll find the perfect balance between ad sets, the required ad set budget and we keep control of your CPA.

We’ve innovated this campaign optimisation engine for customers focussing on a maximum cost per action with a fixed goal and the best relative results. You will get the maximum results out of your target KPI.

How does this differ from a manual bid info?

The difference between a manual bid info and our optimisation method based on a fixed KPI is crucial for your campaign performance. Facebook’s manual bid will kill your campaign delivery if your bid is too low. Hyper Optimisation will guarantee campaign delivery while staying below your target KPI or cost per conversion (action).

What’s next?

We’re constantly innovating our platform, we’re developing more optimisation options for future releases. We’ll keep you posted!

Optimise your campaigns based on target KPI

Do you want the best results out of your advertising campaigns? Create your Facebook & Instagram advertising campaigns with The Next Ad and optimise automatically based on target KPI.